Audioboom - Ignore Cavendish's Bogus Numbers and buy

Today Cavendish released their Technology & Telecoms Sector note research-tree.com/resea…

Audioboom shareholders will be no doubt bemused to see their company being ranked as a backmarker in Cavendish's Tech universe given Wednesday's blowout results. I have taken their numbers out of the report and appended them below. From this you can see that Cavendish's numbers are a work of complete fiction against the REAL numbers below:

Audioboom’s Real Growth vs. Cavendish's Fiction

• No, Audioboom is not growing at a sluggish 7.6% sales growth. The company’s sales growth is running at a high-octane 30% with total revs now at US$45.7 million in H1.

• No, Audioboom is not achieving a meagre 15.8% EBITDA growth. In Wednesday's numbers, Audioboom's H1 adjusted EBITDA skyrocketed 80% to US$3.2 million.

• No, Audioboom’s EPS growth is not 12.2%. In Wednesday’s numbers Audioboom posted an EPS of 17.3 cents for the half- a massive 124.6% increase from the 7.7 cents delivered in H1 2025.

In our previous posts wizardswinners.substack… and wizardswinners.substack…, we demonstrated why Cavendish's valuation of Audioboom is bogus. But not content with using a bogus valuation methodology, they are now peddling entirely incorrect and bogus raw data numbers for BOOM. What are they playing at?

How did Cavendish reach their bogus numbers?

Relying on Automated Spreadsheets over Fundamental Reality The footnote at the bottom of Cavendish's own table shows they did not even use their own proprietary, up-to-date modelling (which shareholders pay them for). Instead, they pulled automated data from a third-party aggregator, stating: "Source: FactSet, as at 15/07/2026".

FactSet takes time to update. But don’t let that bother Cavendish, they’ll just pull their numbers from anywhere without checking. It’s clear from this they don’t even use their own numbers, thus they do not have a cashflow model, and in turn they are in no position to provide an estimate of Audioboom’s valuation.

Look a bit closer and we see that the forward estimates they use are based on a ‘blended consensus’ of covering brokers who simply hadn't yet updated their models to reflect the massive 30% revenue beat. It is a spreadsheet lag disguised as analysis. Cavendish are literally scraping other brokers and presenting it as their own. This is a kick in the teeth to management, the Board and shareholders who are working so hard to make Audioboom a success.

Artificially Depressing BOOM's Valuation Because Cavendish's table relies on ‘12-month forward multiples’ against that stale consensus, the denominators in their math - Earnings and EBITDA - are severely depressed. Not only can they not make half-decent forecasts of the future, they can’t even look at their watch and tell the time. This is beyond abysmal.

When you divide Audioboom's current £90 million market cap by those lagging, un-upgraded earnings estimates, the multiples naturally look bloated. That is exactly why the table spits out an expensive-looking 16.7x EV/EBITDA and a 21.4x P/E. It also prints a pitiful 4.4% FCF Yield (which should be closer to 6.0% based on our upgraded US$6.9 million free cash flow target - and in any case as we’ve argued is not a fair depiction of Audioboom’s FCF engine trajectory). This also completely ignores the unconstrained operational leverage - now driven by 22% gross margins - that we know is rapidly accelerating cash generation.

By substituting subjective, lagging multiples for rigorous modelling, Cavendish has engineered a table that makes an unconstrained, cash-flowing juggernaut look like a crappy legacy stock.

In sum, Cavendish’s work is beyond laziness. This is a fundamental misrepresentation of the company to its shareholders and a key reason for the share price's underperformance in the market.

Cavendish do not understand Audioboom as a business. Today they put two fingers up to shareholders declaring they also do not want to. They need to be held to account at next week’s AGM.

Shareholders who want an accurate picture of where the company is at and where it is heading can find it wizardswinners.substack…. We have modelled the cashflows and have fair value at £22.85 with Audioboom being a clear leader in the Tech Universe and a clear buy.

#BOOM #BOOM.L $BOOM